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Loan for civil servants without credit bureau

Officials enjoy a special status with credit institutions because they have an extremely crisis-proof job. The employer can only order discharge from the civil service relationship in the event of serious misconduct, while behavioral dismissals of employees are possible with repeated minor violations.

Dismissals due to operational reasons are completely excluded in the civil service relationship. If a post ceases to exist after a restructuring, the employer must offer the civil servant concerned an appropriate alternative or, if necessary, release him with full remuneration. Even incapacity to work has less drastic consequences for civil servants than for employees, since the pension to be paid in this case is significantly higher than the disability pension provided by the statutory pension insurance.

Church officials and officials from other recognized religious communities are treated as civil servants. Credit institutions often offer government loans at discounted rates. However, domestic banks generally do not grant loans to civil servants without Credit Bureau.

Reasons for an official loan without Credit Bureau

In most cases, a loan is required for civil servants without a Credit Bureau because the civil servant has forfeited a negative Credit Bureau entry. Contrary to the assumption of many civil servants, a single soft negative feature does not generally exclude borrowing with a Credit Bureau request. In the case of civil servants in particular, financial institutions overlook a single negative feature, since the good results when checking other creditworthiness features such as job security and the level of income compensate for the flaw.

In the case of several soft or hard Credit Bureau negative characteristics, on the other hand, even for an official, borrowing without Credit Bureau is necessary. In addition to poor creditworthiness, there is another reason to apply for a loan for civil servants without Credit Bureau: If the civil servant plans extensive further financing within the next half-year, such as borrowing for building a house or buying a property, a civil servant loan that was taken out shortly before and worsens to the Credit Bureau the score. The change in the statistical probability of default for the loan installment leads to higher interest costs if the interest rate calculation of the second loan depends on the creditworthiness.

The Swiss loan of 3500 or 5000 USD

The best-known variant of lending to civil servants without a Credit Bureau is Swiss credit. In addition to the federal financial institutions, this product name is also used by banks from Liechtenstein. You generally grant a loan for civil servants without Credit Bureau up to a total of 3500 or 5000 USD. The basic requirement is an official’s income above the garnishment exemption limit, which almost every official receives. The Swiss or Liechtenstein loan for civil servants without Credit Bureau is processed entirely in USD so that the borrower is not confronted with exchange rate fluctuations. Despite the Credit Bureau request that was not made, the Swiss or Liechtenstein official loan is not a loan without any credit check.

Rather, the bank does this at ZEK. Even if their tasks are comparable to those of Credit Bureau, German officials do not have to fear that an existing Credit Bureau entry will make it difficult to borrow. The ZEK database is limited entirely to loans taken out in Switzerland or Liechtenstein. Thus, the standard request to the federal credit protection only prevents applicants from different banks from taking out loans for civil servants without Credit Bureau in the amount of 3500 or 5000 USD.

Other options for borrowing for officials without Credit Bureau

If officials need more than 3500 to 5000 USD as a Credit Bureau-free loan, they hire a credit broker. This passes on requests for a loan for civil servants without Credit Bureau not only to Swiss and Liechtenstein financial institutions, but also to banks in other countries. The country of the bank paying the loan is of importance to the official borrower if it does not belong to the USD area. Unlike Swiss and Liechtenstein financial institutions, other foreign banks use the respective national currency for credit processing. The repayment amount can therefore change due to exchange rate fluctuations. Loans for civil servants without Credit Bureau can also be taken out on platforms for lending between private individuals.

At some of the brokerage platforms, loan seekers can choose whether the request should be processed with or without Credit Bureau information. However, private lenders also draw requests for a loan despite the negative Credit Bureau feature. The renewed use of credit lines that have already been granted can also be classified as borrowing without Credit Bureau, especially since only the acceptance of a corresponding credit line and not the extent of the subsequent drawdown is reported to the credit protection. After officials have forfeited a Credit Bureau negative entry, they can continue to use the existing credit card as well as the existing credit facility. However, officials with bad credit should refrain from requesting an increase in the credit line, because this usually triggers a new credit check.